The December 31, the Trial Balance of ABC Company Before

Multiple Choice

The December 31, the trial balance of ABC company before adjustments included the following accounts: $$\begin{array} { | l | l | l | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Allowance for doubtrul accounts } & \$ 2,000 & \\\hline \text { Sales } & & \$ 830,000 \\\hline \text { Sales returns and allowances } & 10,000 & \\\hline\end{array}$$ The company estimates its bad debts based upon 2 percent of net credit sales. What amount should it record as bad debt expense, assuming all sales are credit sales?

A) $14,400
B) $14,600
C) $16,400
D) $16,600